Crude oil rises by 79% in 2009 – the biggest annual gain since a decade

01-Jan-10

Crude oil for February delivery rose to US$79.85 a barrel on the Nymex. Rising for the seventh consecutive day, crude oil prices have increased to just below US$80/barrel, and seems set for the largest annual price gain since a decade. Oil prices are set for a 79% gain this year and are poised for the biggest annual gain since 1999 on optimism of improving consumption as the global economy recovers. Futures have tripled over the past decade. Crude oil rose for a seventh day on increased demand for heating fuels as the winter gets colder, settling at a six-week high amid concerns that the unrest in Iran may disrupt supplies. OPEC will cut oil shipments for the first time in two months in the four weeks ending Jan. 9, to 22.89 mln bpd, according to consultant Oil Movements. Crude oil inventories in USA fell a fourth week to the lowest since January. Companies in USA expanded more than expected in December as orders and employment grew.